LONDON, February 12, 2016 /PRNewswire/ --
Price of roses soars due to low sterling performance against Euro
Valentine's Day romantics face paying more for a bunch of roses thanks to adverse foreign exchange rates which have driven up the cost of importing flowers from European growers.
Research by corporate forex broker Foenix Partners shows that imports of roses will be around 6% more expensive now than they were last year due to the GBPEUR rate slipping by that amount from last February to this.
The pound's weak performance this year means since December, when flower importers typically finalise orders in preparation for Valentine's, there have been 9% moves - again making imports more expensive.
Given that many of the UK's most famous flower markets, such as Covent Garden, import the majority of their roses from Holland, this means there will be particularly high import costs. This is also the case for many online flower retailers.
Richard de Meo, founder and Managing Director of City-based Foenix Partners explains, "Roses are the key theme of Valentine's Day but there will be no love from flower retailers for the performance of sterling, which has not been kind since last February.
"GBPEUR was around 1.3500 last Valentine's Day versus today's level of 1.2700, making it 6% lower.
"However, the 60-day order cycle means many florists will have been calculating their costs based off the assumed rates available at Christmas. December had a significantly more favourable rate of around 1.4200.
"The actual levels now that payment is due are 1.2700, which is 9% lower and a cost that will be passed back to the customer, making Valentine's even more expensive than it is already."
ABOUT FOENIX PARTNERS
Foenix Partners is a corporate Foreign Exchange (FX) boutique providing a full range of FX products for currency conversion and risk management.
Based in the City of London, Foenix Partners was founded by Richard de Meo in 2011 with the backing of a large international venture capital firm listed on the Hong Kong Stock Exchange.
SOURCE Foenix Partners